Stock market futures pointed to a subdued Thursday opening as investors responded coolly to Nvidia’s impressive quarterly earnings and Salesforce’s disappointing revenue outlook weighed on market sentiment.
The artificial intelligence chipmaker saw its shares climb just 0.8% in pre-market trading despite delivering quarterly results that exceeded analyst expectations and providing current-quarter revenue guidance above market projections.
“Investors have been wary of the AI trade and its implications as we look out over the next couple of years and even though Nvidia did deliver strong numbers, it wasn’t enough to convince investors to push the stock higher,” explained Jeff Schulze, head of economic and market strategy at ClearBridge Investments.
Major technology companies including Apple and Microsoft showed modest gains in early trading, with most large-cap growth stocks trading in neutral to slightly positive territory.
As of 8:33 a.m. Eastern Time, Dow E-mini futures gained 110 points or 0.22%, while S&P 500 E-mini futures rose 7.25 points or 0.1%. Nasdaq 100 E-mini futures increased 17.5 points or 0.07%.
Salesforce stock dropped 1.3% after the cloud computing company projected fiscal 2027 revenue below analyst estimates, indicating slower corporate spending on enterprise software solutions.
Software company earnings are drawing heightened scrutiny this reporting season, as the S&P 500 software and services sector has plummeted nearly 21% year-to-date due to concerns about artificial intelligence disrupting traditional business models.
Beyond software, sectors including financial services, data analytics, legal services, real estate services, and transportation have experienced significant declines this year as investors worry about AI-driven disruption.
February has proven volatile for U.S. stock markets, with major indices experiencing sharp swings as investor sentiment toward AI and technology companies fluctuates. Many are questioning whether massive planned AI investments will generate expected returns.
The S&P 500 and Nasdaq reached two-week peaks on Wednesday, driven by a surge in major technology stocks.
Thursday’s economic data showed weekly jobless claims for the period ending February 21 totaled 212,000, slightly better than the 215,000 economists had predicted.
In individual stock movements, Trade Desk plummeted 15.3% after the advertising technology company forecasted first-quarter revenue below expectations amid increased competition from larger industry players.
J.M. Smucker shares surged 7.1% following the Uncrustables manufacturer’s better-than-expected fourth-quarter earnings and sales results. The company also announced two new board appointments after reaching a “constructive engagement” with Elliott Investment Management.
C3.ai stock tumbled 24.5% after the software company projected current-quarter sales below estimates and announced plans to eliminate 26% of its global workforce.
Celsius Holding shares jumped 12.4% after the energy drink company reported fourth-quarter revenue that surpassed analyst projections.
Market participants also kept watch on ongoing diplomatic discussions between the United States and Iran in Geneva, focused on resolving nuclear disagreements and preventing additional U.S. military action following recent tensions.
